Argonaut Closes Underwriter’s Options

Argonaut Group Inc., based in San Antonio, announced it has closed on the sale of an additional 210,000 shares of its common stock at a public offering price of $26.75 per share, before underwriting discounts and commissions, to Raymond James & Associates, in connection with the exercise of the over-allotment option granted to Raymond James & Associates as the underwriter on Argonaut Group’s recent offering of 1.4 million shares of common stock that closed on Oct. 10, 2005.

The company intends to use the net proceeds from the offering for general corporate purposes, including capital contributions to its insurance subsidiaries and funding for potential acquisitions. All shares subject to this offering were registered under Argonaut Group’s existing Form S-3 shelf registration statement declared effective by the Securities and Exchange Commission.

Headquartered in San Antonio, Argonaut Group is a national underwriter of specialty insurance products in niche areas of the property and casualty market.